One analyst explained that Ethereum could be set to see further upside based on on-chain data. Here are the levels that ETH can surpass:
Ethereum does not face significant on-chain resistance going forward.
new post At X, analyst Ali discussed what Ethereum’s support and resistance levels look like based on on-chain data. In on-chain analysis, the likelihood that any level can provide a significant level of support/resistance to the price depends on the number of investors who have acquired the coin.
Below is a chart showing the amount of ETH purchased at some price ranges the asset has previously visited.
The density of cost basis at each of the different ETH price ranges | Source: @ali_charts on X
The graph shows that the $2,235 to $2,302 range conveys the cost basis for a significant number of coins. More specifically, 1.84 million addresses acquired more than 6 million ETH within this range.
Ethereum price is currently trading just above this range, which means all investors are in the green. If the Ethereum spot price reverts to this range, holders may see some reaction as the profit-loss boundary will be retested.
Since these holders will have made a profit just before the retest, they may want to buy more as they may believe that the same price range in which they previously made a profit may turn out to be worth buying again.
Because investor coverage is thick, this buying effect that could occur on a retest could ultimately support prices. If support fails, the price could be between $1,958 and $2,029.
This range is much more robust, hosting a cost base of over 37 million ETH. Ali points out that this support could help mitigate any modifications that could potentially occur.
Ethereum now has strong support below and, as the chart shows, there is no significant demand wall above it at the same time. Losing investors (those with a higher cost basis than the current spot price) may be desperate to get out of the market, so prices reaching the breakeven point can be an attractive exit opportunity.
If many holders are struggling, their demand zone could provide significant resistance to the price due to such selling. ETH has no such hurdles in its nearby price range, which could allow the coin to rise further. “The path ahead is clear for ETH, with no significant supply barriers in sight, suggesting a rise above $2,700 is likely,” the analyst explains.
market information platform Into the Block We also shared a chart that may provide further evidence for the bullish case for Ethereum.
The trend in the HODLer ratio for Bitcoin and Ethereum | Source: IntoTheBlock
As you can see in the graph above, there has been a recent surge in the percentage of Ethereum investors who can be classified as “HODLers” (holding for more than a year). “The percentage of long-term ETH holders has surpassed the percentage of Bitcoin holders for the second time this year!” See IntoTheBlock.
ETH price
Ethereum is currently sitting around $2,316, not too far from the aforementioned support zone.
Looks like the price of the coin hasn't been moving much recently | Source: ETHUSD on TradingView
Featured image by Kanchanara on Unsplash.com, chart by TradingView.com, IntoTheBlock.com
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